July 28, 2017

Options Strategy Advances – Up 40.2% Since Inception

Yesterday, I mentioned the potential for a trade in one of the major benchmark ETFs.

The trade became a reality this morning after I took a position in the Nasdaq 100 (QQQ) shortly after the opening bell. You can see all of the trades and how the strategy has performed here. I was able to buy QQQ Sep11 56 calls for $2.71 and sold the calls almost near the high of the day at $2.88. Not the biggest return by any means, but it did amount to a respectable 6.3 percent return on the trade. It was enough to push the overall return of the strategy 3 percent to 40.2 percent. The win ratio is an astounding 93.3 percent (hard to believe I know) and the Sharpe ratio is 1.63. I would imagine that once the statistics are updated on my third-party monitoring site, Collective2 the Sharpe ratio will kich up 1.8 or so. I certainly would like to see it move above 2 over the next 4-6 months.

There are stil a few spots left in my subscriber pool, so give my newsletter and the strategies I use a try. You might find that they are a great way to add higher beta to yout portfolio.

Currently, the only ETF that I would consider taking a position in is India (EPI). The ETF h moved into a short-term extreme oversold state with a RSI (2) that supports the move. If the ETF moves lower at the open we could have back to back trades, an rare occurrence indeed.

Until then.

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